Question

1. General Electric won a bid to supply jet engines with a total list price of $600 million to China Airlines. Assuming a trade discount of 20 percent, what did General Electric receive?

Answer 1

on $ 100 the discount would be $ 20
therefore on $ 1 the discount would be 20/100 = 1/5
on $ 600 million the discount = 1/5x $ 600 million = $ 120 million
Money Received by General Electric = $(600-120) million = $480 million

Answer 2

Oh I get it now thank you very much. ;-)